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How Entrepreneurs Think

posted 18 Nov 2010, 13:02 by Sam Mbale   [ updated 18 Nov 2010, 13:03 ]

Can the way a individual thinks have an impact on the
likelihood of his being a successful entrepreneur? Indeed!

Studies have shown that a person who has an entrepreneurial
mindset thinks differently than those who are satisfied with
just being mere employees.

An entrepreneurial mindset focuses more on effectual
thinking instead of causal thinking. Effectual thinking is
very important especially in the starting a new business

The Difference Between Causal Thinking and Effectual

Entrepreneur wannabes often indulge in causal thinking.
Causal thinking deals with having a goal in mind and having
a definite plan to achieve the said goal. It also encourages
a person to find better ways to implement the plan and
achieve their goal.

Of course, the person has all the flexibility in the world
to find several alternatives to achieve the goal he has
first set and this goal stays the same all through out.

Effectual thinking, on the other hand, is a fairly different
idea. And yes, it starts the same way as a causal thinker
would have it.

There are set means, yes, but the goals develop over time
and are molded by the imagination and interaction of the
entrepreneur with the other people who contribute to his

With effectual thinking, there are no set goals in the
beginning. The formation of goals by an effectual thinker is
based on three factors:

Personality: (what he is as a person)

Knowledge: (his formal education and training)

Network: (who he knows socially and professionally).

How Entrepreneurs Think:

Elaborating the difference between causal thinking and
effectual thinking does not mean that an entrepreneur only
uses one type of thinking. In fact, the best entrepreneurs
make use of both types at the right time.

For someone who is still starting out, effectual thinking
should be put into action. Why? For two things.

First, being an effectual thinker means being creative. You
are not limited by your means as well as your goals. You may
think of alternate routes to get to your goal, but if it
doesn't work, you can easily scrap those routes altogether.

And since effectual thinkers aren't limited to one grand
goal, success may come from an unexpected direction and in
the most unexpected time.

Secondly, when you become an effectual thinker, you develop
all the characteristics required to make an entrepreneur

These characteristics include creativity, resourcefulness,
tenacity and persistence along with your intuitive

Effectual entrepreneurs aren't fortune tellers and they do
not try to be one. Instead, they will work to create the
future that they want their businesses to be in.

Becoming Successful:

Success does not come overnight and effectual entrepreneurs
know this. If the first plan doesn't work, then it's time to
move on to the next one, and so on and so forth.

Being successful is just like playing hide and seek with you
as the "it". Just because success doesn't come from the first
place, as a true entrepreneur you continue moving forward
looking for it.

As an effectual thinking entrepreneur, you are allowed to
adapt to the moment and change goals on the fly.

Remember, the best entrepreneurs make use of both types of
thinking. As a budding entrepreneur yourself, you would do
well to follow their example.

About the Author:

Kathy Dobson is a free spirited entrepreneur and business
owner committed to helping individuals discover personal and
financial freedom through learning the art of outsourcing.
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